Contractors and employees in fitness businesses

Updated 20 September 2026.

Calling a trainer a contractor, asking for an ABN or paying invoices does not by itself settle their employment status. A fitness business should check the legal test that applies to its business and the actual arrangement before deciding how to engage someone.

Start with the correct test

The Fair Work Ombudsman explains that, from 26 August 2024, constitutionally covered businesses generally use the whole-of-relationship test. That looks at the real substance, practical reality and true nature of the relationship, including the contract and how it operates. Other businesses and circumstances can use a different test. Check the Ombudsman’s guidance before applying a rule to your own situation.

Relevant factors can include control over the work, financial risk, who supplies equipment, whether work can be delegated, working hours and the expectation of continuing work. No single label replaces consideration of the relevant factors together.

Prepare a factual record

Before seeking advice, write down how the arrangement works on an ordinary week. Who chooses session times? Who sets prices and collects client payments? Who handles cancellations? Can another suitably qualified person deliver the service? Who pays expenses? What does the written agreement say, and where does practice differ?

This record helps an adviser understand the arrangement without relying on a job title such as freelance trainer or studio partner. Include the business structure, dates of work, current contract, rosters and payment records. Keep personal information secure when sharing these documents.

Check more than the contract heading

Employment status can affect obligations across workplace relations, tax, superannuation and insurance. Those areas do not necessarily use identical rules. Obtain appropriate advice for each rather than assuming one classification answers every question.

The Fair Work Ombudsman also provides guidance on sham contracting. If the existing arrangement is uncertain, review it before changing terms or asking workers to sign replacement agreements.

This updated guide is a general starting point, not the historical advisory note previously cited at this address and not legal advice for a particular business.